REGINA – Ninety Agricultural Credit Corporation of Saskatchewan jobs were cut last week when the province announced it was eliminating the lender.
Finance minister Janice MacKinnon announced the corporation’s demise in her March 28 budget speech.
The government agreed with a suggestion by a McLean, Sask. farmer who wrote to her asking, “Why duplicate the Farm Credit Corporation?”
“We agree,” MacKinnon said. “We are winding down the Agricultural Credit Corporation of Saskatchewan, saving $3 million (this) year.”
The plan is expected to take four years and the Watrous, Meadow Lake, Estevan and Moose Jaw offices will be the first to close.
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“ACS’s other 16 offices will remain open during 1996-97 and will be phased out in future years concurrent with the reduction in the number of customers and outstanding loans,” said agriculture minister Eric Upshall.
Based in Swift Current, ACS grew out of the former Saskatchewan Farm Start program. It first began lending money in 1973 and was incorporated as ACS in 1984.
About 20,000 clients have outstanding loans totaling $400 million, Upshall said. He expected Farm Credit Corporation and other financial institutions will take over some of the portfolio.
Opposition agriculture critic Harvey McLane said the decision to eliminate ACS should be monitored.”I’d like to know what the plan is to look after the people that are involved in there now,” he said.
Representatives from various farm groups said losing ACS shouldn’t hurt clients as long as they are treated fairly by other financial institutions.
“I think it is positive as long as that alternative to the credit institutions is there, as long as Farm Credit (Corporation) stays in place,” said Barry Senft, second vice-president of Saskatchewan Wheat Pool.
Also announced in the budget was the immediate closure of rural service centres in Leader, Kamsack, Melfort and Fort Qu’Appelle.
The department saw its budget cut by $52 million, $40.5 million of that from farm income stability and development. The latter amount was a one-time contribution last year to start the crop sector program.
The remaining reductions came through closure of crop insurance offices and rural service centres, and from administrative savings, Upshall said. There were 39 departmental jobs cut.
